The taper continues.
The Federal Reserve’s Federal Open Market Committee just announced its latest monetary policy decision, and there were no surprises.
The FOMC said it would take another $US10 billion off its monthly asset purchases and keep interest rates between 0%-0.25%. The Fed began paring its rate of monthly asset purchases, known as quantitative easing, last December.
In the minutes from its June FOMC meeting, the Fed indicated that it would conclude QE with its October meeting.
In Wednesday’s statement, the Fed said, “a range of labour market indicators suggests that there remains significant underutilization of labour resources.”
On the inflation front, the Fed said it, “judges that the likelihood of inflation running persistently below 2 per cent has diminished somewhat.”
To continue reading this post and the full statement from the fed please click here.
The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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